Core Insights - Vertiv (VRT) and Amphenol (APH) are significant players in the AI Infrastructure market, with Vertiv focusing on power and cooling solutions for data centers, while Amphenol provides high-performance connectors and interconnect systems essential for AI hardware [1][2] Market Overview - The AI infrastructure market was valued at $87.6 billion in 2025 and is projected to reach $197.64 billion by 2030, with a compound annual growth rate (CAGR) of 17.71% [2] Vertiv (VRT) Analysis - Vertiv has a diverse product portfolio that includes thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions, contributing to its growth [3] - In the trailing 12 months, Vertiv's organic orders increased by approximately 11%, with a book-to-bill ratio of 1.2 for Q2 2025, indicating strong demand [3] - The company's backlog grew by 7% sequentially and 21% year-over-year, reaching $8.5 billion [3] - Vertiv's energy-efficient solutions are crucial for meeting the rising power demands of complex AI hardware and edge computing [4] - The launch of Vertiv OneCore, a scalable prefabricated data center solution, is expected to enhance deployment efficiency and reduce complexity [5] - Vertiv has established partnerships with notable companies such as NVIDIA and Intel, further solidifying its position in the AI infrastructure space [6] Amphenol (APH) Analysis - Amphenol benefits from a diversified business model and a strong portfolio of high-technology interconnect products [7] - The company launched the UQD and UQDB liquid cooling connector series in June 2025, aimed at improving thermal management in AI data centers and EV charging infrastructure [8] - Amphenol's acquisitions, including CIT and CommScope's Andrew business, are enhancing its technological capabilities and market reach [9] - The company's order growth surged by 36% year-over-year, reaching $5.523 billion, with a book-to-bill ratio of 0.98:1 in Q2 2025 [9] Performance Comparison - Year-to-date, Vertiv's shares have increased by 9.2%, while Amphenol's shares have appreciated by 59%, attributed to Amphenol's diversified market exposure and effective acquisition strategy [12] - Vertiv's shares are currently trading at a trailing 12-month Price/Book ratio of 15.15X, compared to Amphenol's 11.64X, indicating that both stocks are overvalued [15] - Earnings estimates for Vertiv in 2025 are projected at $3.82 per share, reflecting a 34.04% year-over-year increase, while Amphenol's estimates are at $3.02 per share, showing a 59.79% increase [17] Conclusion - Both Vertiv and Amphenol are positioned to benefit from the AI infrastructure boom, but Amphenol's stronger earnings momentum and diversified growth drivers suggest it may offer greater upside potential in the near term [20]

Core Insights - Vertiv (VRT) shares have increased by 10.6% year to date, underperforming the broader Zacks Computer and Technology sector's growth of 14.1% due to a challenging macroeconomic environment [1] - The company has outperformed the Zacks Computers - IT Services industry, which has seen a decline of 15.3% during the same period [2] Stock Performance - Vertiv's backlog grew by 21% year over year to $8.5 billion, with a book-to-bill ratio of 1.2 for Q2 2025, indicating strong demand [5][10] - The revenue outlook for 2025 has been raised to between $9.93 billion and $10.08 billion, with organic growth projected at 23% to 25% [10][13] Product and Service Expansion - Vertiv launched Vertiv OneCore, a scalable prefabricated data center solution that integrates power, thermal, and IT infrastructure [7] - The company acquired Waylay NV to enhance its AI-driven monitoring and control capabilities for data centers [8] Partnerships and Collaborations - Vertiv's extensive partner base, including companies like NVIDIA and Intel, has been a significant growth driver [9] - Collaboration with Tecogen provides advanced natural gas-powered chiller technology, addressing power constraints for AI deployments [12] Earnings Estimates and Valuation - The Zacks Consensus Estimate for Q3 2025 earnings is 99 cents per share, reflecting a year-over-year increase of 30.26% [15] - Vertiv is currently trading at a trailing 12-month Price/Book ratio of 15.36X, indicating it is overvalued compared to the broader sector [17] Conclusion - Vertiv's strong portfolio and partner base are driving order growth, justifying its premium valuation [21]

Market Overview - U.S. equity markets closed higher, driven by optimism over potential monetary easing despite concerns about softening labor data [1][2] - The S&P 500 rose by 0.83% to 6,502.08, the Nasdaq Composite increased by 0.98% to 21,707.69, and the Dow Jones Industrial Average gained 350.06 points, or 0.77%, to settle at 45,621.29 [1] Economic Data - The ADP private payrolls report indicated only 54,000 jobs were added in August, significantly below the revised 106,000 jobs in July, suggesting a slowdown in job creation [2] - Despite the weak employment numbers, stock prices increased as traders interpreted the data as supportive of a potential rate cut by the Federal Reserve [2] Focus on Financially Resilient Stocks - In the current macroeconomic environment, it is crucial to focus on companies with strong financial fundamentals beyond just sales and earnings [3] - A critical analysis of a company's financial background, including coverage ratios, is essential for informed investment decisions [4] Interest Coverage Ratio - The Interest Coverage Ratio is a key indicator of a company's ability to pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5][6] - Companies with strong interest coverage ratios, such as Vertiv Holdings, Stride, Ralph Lauren, and The Cheesecake Factory, are highlighted for their financial resilience [10] Company Performance - Vertiv Holdings: Zacks Consensus Estimate indicates sales and EPS growth of 24.5% and 34% respectively, with shares advancing 75.2% in the past year [14] - Stride, Inc.: Expected sales and EPS growth of 11% and 5.9% respectively, with a stock increase of 104.1% in the past year [15] - Ralph Lauren Corporation: Anticipated sales and EPS growth of 6% and 19.8% respectively, with shares rising 85.6% in the past year [16] - The Cheesecake Factory: Projected sales and EPS growth of 5.1% and 9.6% respectively, with a stock increase of 63.1% in the past year [17]

Core Insights - Vertiv has maintained its position as the market leader in precision cooling, UPS, and micro-module markets in China for several consecutive years, showcasing its superior product and system capabilities [2][11] - The company emphasizes its full-chain product strength and continuous evolution, providing tailored thermal management solutions for various scenarios in the era of intelligent computing [3][15] Full-Chain Thermal Management - Vertiv has developed a comprehensive "air-cooled + liquid-cooled" thermal management solution, effectively adapting to different scenarios with energy-efficient technologies such as hybrid cooling and intelligent control systems [5][13] - The company’s innovative technologies, including pre-cooling and supplementary cooling, contribute to achieving reliable PUE delivery [5] Full-Chain Power Management - Vertiv has ranked first in the UPS market for 17 consecutive years, offering a complete power management system that covers the entire supply chain from the grid to the chip [7][9] - The company’s power management solutions are designed to adapt to high-density scenarios in data centers and AI applications, ensuring reliable power supply [9] Micro-Module Market Leadership - Vertiv's micro-module market leadership is viewed as a starting point for further iterations, focusing on integrated solutions that combine cooling, power, and AI [11][13] - The deployment cycle for their solutions has been significantly reduced from 6-9 months to just 5 days, enhancing operational efficiency and lowering total cost of ownership (TCO) [13] AI and High-Density Computing - Vertiv's products, such as the SmartArray, support high-density computing environments, accommodating single cabinet densities of 45kW or more, which is essential for GPU clusters and large model training [15] - The company aims to redefine the foundational infrastructure for computing power in the AI era, reflecting its 60 years of technological quality [15] Company Overview - Vertiv, formerly Emerson Network Power, is a global leader in digital infrastructure solutions with over 50 years of experience, serving various sectors including telecommunications, data centers, and renewable energy [16] - The company operates three R&D centers and two manufacturing bases in China, providing high-quality products and professional services across more than 100 cities [16]

Company Performance - Vertiv Holdings Co. closed at $127.73, down 4.84% from the previous trading session, underperforming the S&P 500, which lost 0.64% [1] - The stock has decreased by 7.81% over the past month, while the Computer and Technology sector gained 2.91% and the S&P 500 gained 1.91% [1] Earnings Projections - The upcoming earnings report is expected to show earnings of $0.99 per share, reflecting a year-over-year growth of 30.26% [2] - The Zacks Consensus Estimate for revenue is projected at $2.57 billion, an increase of 24.13% from the previous year [2] - For the full year, analysts expect earnings of $3.82 per share and revenue of $9.97 billion, representing changes of +34.04% and +24.47% respectively from last year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates indicate a positive outlook for Vertiv Holdings Co., with a Zacks Rank of 2 (Buy) [4][6] - The Zacks Consensus EPS estimate has increased by 7.03% in the past month [6] Valuation Metrics - Vertiv Holdings Co. has a Forward P/E ratio of 35.11, which is a premium compared to the industry average of 16.87 [7] - The company has a PEG ratio of 1.18, compared to the Computers - IT Services industry average PEG ratio of 2.11 [8] Industry Context - The Computers - IT Services industry is ranked 158 out of over 250 industries, placing it in the bottom 37% [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Insights - Vertiv (VRT) is experiencing strong organic order growth, with a 15% year-over-year increase and 11% sequential growth in Q2 2025, surpassing $3 billion in orders for the first time [1][10] - The company's backlog reached $8.5 billion, reflecting a 21% year-over-year increase and a 7% sequential increase, supported by a book-to-bill ratio of 1.2x [2][10] - Regional performance is a significant growth driver, with the Americas showing mid-40% growth, APAC with mid-30% growth, and EMEA delivering high single-digit growth [2][10] Company Performance - The trailing 12-month organic orders growth is at 11%, indicating sustained momentum [2] - Vertiv's collaborations with industry leaders like CoreWeave and Oklo demonstrate its commitment to innovation in data center infrastructure [3] - Recent acquisition of Waylay NV enhances Vertiv's AI-driven monitoring and control capabilities for data centers [4] Competitive Landscape - Vertiv faces stiff competition from ABB and Eaton, both expanding their capabilities in the data center infrastructure market [5] - ABB reported double-digit order growth in Q2 2025, driven by demand across multiple regions [6] - Eaton's data center orders surged approximately 55% year-over-year, with a 50% increase in sales in Q2 2025 compared to the previous year [7] Stock Performance and Valuation - Vertiv's shares have gained 18.2% year-to-date, outperforming the broader Zacks Computer & Technology sector, which appreciated 13.4% [8] - The stock is trading at a premium with a trailing 12-month Price/Book ratio of 16.40X compared to the sector's 10.21X [11] - The consensus estimate for 2025 earnings is $3.82 per share, reflecting a 34.04% increase from 2024 [13]

Group 1: Broadcom (AVGO) - Broadcom has quickly entered the AI race with a broad portfolio of technologies, reflecting a strong commitment to next-generation AI infrastructure [2][6] - The company currently offers a dividend yield of 0.8% annually, with a five-year annualized dividend growth rate of 13.3% [2] - Broadcom's free cash flow reached $6.4 billion, showing a 44% year-over-year growth, marking a quarterly record [5] - AI revenue for Broadcom was $4.4 billion, representing a 46% year-over-year increase, with expectations of $5.1 billion in AI sales for the upcoming quarter [8] Group 2: Vertiv (VRT) - Vertiv provides services for data centers and communication networks, focusing on power, cooling, and IT infrastructure solutions [10] - The current Zacks Consensus EPS estimate for Vertiv is $3.82, indicating a 35% year-over-year growth and a 15% increase over the past year [11] - Vertiv's shares yield a modest 0.1% annually, but the company is positioned as a strong growth and yield play [13] Group 3: Investment Outlook - Both Broadcom and Vertiv are identified as dividend-paying tech stocks that, while not high-yield, offer significant potential due to their AI offerings [15] - The bullish outlook for AI revenue in both companies presents an attractive opportunity for income-focused investors [15]

Market Overview - The U.S. equity markets have experienced significant volatility, reaching record highs due to Federal Reserve Chair Jerome Powell's hints at rate cuts, but also declining sharply due to concerns over NVIDIA's upcoming earnings release [1] - President Trump's actions, including threats to remove Federal Reserve Governor Lisa Cook, have contributed to market uncertainty, potentially leading to a legal battle that could escalate to the Supreme Court [1] Momentum Investing Strategy - Investors are increasingly turning to momentum stocks, such as Vertiv Holdings Co (VRT), MasTec, Inc. (MTZ), and Robinhood Markets, Inc. (HOOD), as a strategy to achieve sustained profits when traditional value or growth investing does not yield desired results [2] - Momentum investing is based on the principle of "buying high and selling higher," capitalizing on established trends that are likely to continue due to existing momentum [3] Screening Parameters for Momentum Stocks - The strategy involves selecting the top 50 stocks with the best percentage price change over the last 52 weeks to identify those that have appreciated steadily [5] - From these, the 10 worst performers over the past week are chosen to identify stocks that have experienced a short-term pullback [6] - Stocks with a Zacks Rank 1 (Strong Buy) are included, as they have a proven history of outperformance [6] - A Momentum Style Score of B or better is required, indicating favorable timing for investment [7] - Stocks must have a current price greater than $5 and be among the top 3000 by market capitalization to ensure stability [8] Selected Stocks - Vertiv has seen a price increase of 60.2% over the past year but has declined by 7.9% in the last week, with a Momentum Score of B [9] - MasTec's stock has risen by 59.7% in the past year, with a slight decrease of 0.7% in the last week, also holding a Momentum Score of B [10] - Robinhood Markets has surged by 415% over the past year but has fallen by 6.2% in the last week, boasting a Momentum Score of A [11]

Core Insights - Vertiv Holdings Co has acquired Waylay NV to enhance its digital infrastructure solutions with AI-based monitoring and predictive services [1][2] - The acquisition aims to improve real-time monitoring, predictive maintenance, and dynamic optimization of power and thermal performance in data centers [2][3] - Waylay's technology will accelerate Vertiv's vision of intelligent infrastructure, enabling data-driven and optimized operations for demanding environments [3] Company Overview - Vertiv is a global leader in critical digital infrastructure, providing a comprehensive portfolio of power, cooling, and IT infrastructure solutions [5] - The company operates in over 130 countries and focuses on enabling vital applications to run continuously and perform optimally [5] Industry Context - The demand for intelligent, adaptive infrastructure is growing due to the increasing workloads driven by AI in data centers [2] - AI-based digital services are essential for supporting high-density computing environments, which are critical for generative AI applications [2]

Core Insights - Vertiv Holdings Co, a leader in critical digital infrastructure, is participating in two investor conferences in September 2025 [1][2] - The CEO Giordano Albertazzi and CFO David Fallon will engage in fireside chats at both conferences [1][2] Group 1: Upcoming Events - The first event is the Goldman Sachs Communacopia + Technology Conference on September 9, 2025, at 8:10 a.m. Pacific time [1] - The second event is Morgan Stanley's 13th Annual Laguna Conference on September 10, 2025, at 9:15 a.m. Pacific time [2] - Live webcasts and related presentation materials will be available on Vertiv's Investor Relations website [2] Group 2: Company Overview - Vertiv integrates hardware, software, analytics, and services to support critical applications for data centers and communication networks [3] - The company operates in over 130 countries, providing solutions for power, cooling, and IT infrastructure [3] - Vertiv's offerings are designed to address challenges in data centers and commercial facilities, enhancing operational performance [3]